Today, the cryptocurrency market experienced a peculiar growth in price: bitcoin, the main cryptocurrency rose up to $7,750, reaching an increment of 15% of its initial price. But the highlight of this fact is that the rise happened during only ten minutes of trading.
The price chart taken from CoinMarketCap shown below shows the price movement. This was a pleasant surprise for traders and people that had bought bitcoin during the high prices era of January and were holding their coins for profit.
These kinds of movements are not that uncommon in the world of cryptocurrencies. This year has been especially bad for the market: Just in May, bitcoin lost more than the third part of its value. This rise has no apparent reason, and it reaffirms that cryptocurrencies are very volatile ways of investing. The volatility of the prices can be good or bad for investing, but generally speaking, it shows that cryptocurrencies are a high-risk asset.
After the price spiked up, it stabilized for a while, and it is now again in a rising trend. It is still unclear if the prices will maintain this level or if they will drop to previous levels. Still, they are far from reaching December highs, when bitcoin was valued at more than $17,000. Investors that bought at those prices (or a little lower) are unlikely to sell with this little increment. But, it is a positive sign for the market that had been falling all this year.
We will update this post with today’s developments to determine if this was a random spike or if it is the beginning of an upward inclination that will hold.